Real-Time Bidding

Definition

What is RTB/Real-Time Bidding?

Real-time bidding (also referred to as RTB) is a subcategory of programmatic purchasing. It describes the practice of purchasing and selling advertisements in real time, on a per-impression foundation, in an immediate auction. This is normally facilitated by an SSP (supply-side stage) or an advertisement exchange.

How Does RTB Work?

At any given time multiple advertisers could bid on one impression of a publisher's inventory, then the winning advertisement is revealed to the consumer. During RTB, advertisers may employ fine-tuned targeting and center on the inventory most applicable to them, which then yields greater ROI and greater eCPMs. RTB also permits advertisers to Offerseven their effort budgets in real time so as to maximize campaign performance.

RTB in Action

Take, by way of instance, the second in a cell game in which the player sees an advertisement between game levels. At the moment, the cellular SSP conducts an auction for each the advertisers considering demonstrating an advertisement to that participant. The advertisers create their bid, at a split-second the maximum bidder is selected, and the advertisement gets served into the participant. Both publishers and advertisers may set parameters such as RTB, for example minimum rates and highest bids, in addition to prioritize certain prices and inventory.

Why is Real-Time Bidding Important?

RTB is successful for both advertisers and publishers. For advertisers, RTB means more compact, efficient, and concentrated purchasing. The capability to fine-tune targeting and concentrate on the most applicable inventory contributes to greater ROI, while customers view more relevant advertisements. For publishers, RTB raises earnings and fill prices by opening inventory into a broader assortment of buyers at a competitive market. In the end, publishers benefit visibility of who's purchasing which inventory and may leverage this understanding to charge more due to their superior placements.

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